We investigated the ability of an oil coating to upgrade Indonesian low-rank coal, which has a low ash content and a moisture content of approximately 30%. Proximate and ultimate analyses of the characteristics of coal samples containing different amounts of asphalt (ASP) and palm fatty acid distillate (PFAD) were studied, including the samples’ calorific values, crossing-point temperatures (CPT), specific surface areas, pore sizes, structural changes, and moisture readsorption. The results showed that the 0.5% PFAD-coated coal was the highest quality. This coal showed few physical and chemical changes, and it had a low surface area and a high CPT value.